[Federal Register Volume 60, Number 149 (Thursday, August 3, 1995)]
[Notices]
[Page 39739]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19101]



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FEDERAL RESERVE SYSTEM


Cardinal Bancshares, Lexington, Kentucky; Notice to Engage in 
Certain Nonbanking Activities.

    Cardinal Bancshares, Lexington, Kentucky (Applicant), has given 
notice pursuant to section 4(c)(8) of the Bank Holding Company Act (12 
U.S.C. 1843(c)(8)) (BHC Act) and section 225.23 of the Board's 
Regulation Y (12 CFR 225.23), to engage through its thrift subsidiary, 
Security First Network Bank, FSB, Pineville, Kentucky (SFNB), in 
certain nonbanking activities related to the provision of electronic 
banking services over the non-proprietary computer network known as the 
``Internet.'' SFNB has received approval from the Office of Thrift 
Supervision to provide certain electronic banking services to its 
customers over the Internet, including deposit and bill-paying 
services.
    Applicant proposes to acquire WebTech, Inc., Atlanta, Georgia 
(WebTech), and thereby market, design, develop, and provide ongoing 
technical support of data processing software for the electronic 
transmission of financial, banking, and economic data for financial 
institutions seeking to provide banking services to their customers 
over the Internet, pursuant to section 225.25(b)(7) of Regulation Y (12 
CFR 225.25(b)(7)). Applicant seeks approval to conduct the proposed 
activities nationwide.
    SFNB will acquire WebTech which will provide data processing and 
security software to financial institutions seeking to provide banking 
services to their customers over the Internet. Applicant indicates that 
this software is designed to enable electronic transmission of banking, 
financial, and economic data in a secure environment over the Internet. 
WebTech also will provide financial institutions ongoing technical 
support related to its software, customization and installation 
services, and data center operations. Moreover, WebTech expects to 
develop additional data processing services that will allow customers 
to provide secure access to accounts across other channels, such as 
through modems across public telephone lines.
    Section 4(c)(8) of the BHC Act provides that a bank holding company 
may, with Board approval, engage in any activity ``which the Board 
after due notice and opportunity for hearing has determined (by order 
or regulation) to be so closely related to banking or managing or 
controlling banks as to be a proper incident thereto.'' 12 U.S.C. 
1843(c)(8). In publishing the proposal for comment, the Board does not 
take a position on issues raised by the proposal. Notice of the 
proposal is published solely in order to seek the views of interested 
persons on the issues presented by the notice, and does not represent a 
determination by the Board that the proposal meets or is likely to meet 
the standards of the BHC Act.
    Any comments or requests for hearing should be submitted in writing 
and received by William W. Wiles, Secretary, Board of Governors of the 
Federal Reserve System, Washington, D.C. 20551, not later than August 
18, 1995. Any request for a hearing on this proposal must, as required 
by section 262.3(e) of the Board's Rules of Procedure (12 CFR 
262.3(e)), be accompanied by a statement of the reasons why a written 
presentation would not suffice in lieu of a hearing, identifying 
specifically any questions of fact that are in dispute, summarizing the 
evidence that would be presented at a hearing, and indicating how the 
party commenting would be aggrieved by approval of the proposal. The 
notice may be inspected at the offices of the Board of Governors or the 
Federal Reserve Bank of Cleveland.

    Board of Governors of the Federal Reserve System, July 28, 1995.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 95-19101 Filed 8-2-95; 8:45 am]
BILLING CODE 6210-01-F